Court Rules
All enforcement actions
SettlementMedium Risk

FTC Finalizes Orders with Cox Media Group, Two Other Firms Settling Charges They Deceived Customers About 'Active Listening' AI-Powered Marketing Service

CMG Media CorporationAugust 27, 2026Federal Trade Commission

Penalty Amount

$930,000

Summary

The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.

Remedy

The companies must pay a total of $930,000 (CMG $880,000, MindSift $25,000, 1010 Digital Works $25,000) to provide redress to affected customers. They are also prohibited from making any misrepresentation about the qualities or features of their advertising or marketing services, the collection and use of voice data, whether consumers have consented to such collection, and the geographic targeting capabilities of their services.

Monetary PenaltyInjunction

Contract Impact

In-house legal teams should review vendor and customer agreements related to marketing and advertising services, particularly those involving data collection from smart devices or voice data. Contracts should include accurate representations about data collection practices, require explicit consumer consent mechanisms, and include warranties that services comply with the FTC Act. Additionally, agreements with marketing partners should contain indemnification clauses for false or misleading claims about data collection or targeting capabilities, and should specify that any AI-powered features are accurately described.

Contract Search Terms

voice data collectionconsumer consentopt-in mechanismactive listeningAI-powered marketingsmart device datatargeted advertisingFTC Act compliancedata privacyadvertising claims

Laws Cited

FTC Act
15 U.S.C. § 45

Violation Types

Entity Details

Entity

CMG Media Corporation

Industry

Advertising

Official Sources

Source Evidence

Entity Name
"CMG Media Corporation, which does business as Cox Media Group"
Fine Amount
"pay a total of $930,000"
Fine Amount
"CMG must pay $880,000 while both MindSift and 1010 Digital Works must each pay $25,000"
Laws Cited
"would itself violate the FTC Act"
Violation Types
"deceived customers by falsely claiming to offer an AI-powered service that could target localized ads based on conversations captured from consumers’ smart devices and that consumers had opted into such targeting."
Violation Types
"the marketing service wasn’t based on voice data, and consumers hadn’t opted into this service."

Related Enforcement Actions

FTC

Greenway Auto Group

The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.

FTC

24 healthcare services companies (not individually named)

The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.

FTC

Premier Franchising Group LLC and Franchise Fastlane LLC

$1.9M

The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.

FTC

Lens.com Inc.

The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.

FTC

Online platforms

The FTC issued an advance notice of proposed rulemaking seeking public comment on whether ad-optimization tools offered by online platforms may help scammers impersonate businesses and government agencies. This is a proposed regulatory inquiry, not an enforcement action against a named company; no penalty or remedy was imposed.

FTC

Amazon.com, Inc.

$2.5B

A federal court approved a revised order in the FTC's Amazon Prime case under which Amazon will accelerate and expand redress payments under the September 2025 $2.5 billion settlement, which resolved allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made cancellation difficult. More consumers now qualify for refunds, the maximum payment cap rises from $51 to $200, and all future payments will be distributed automatically starting October 1, 2026, with potential supplemental $149 payments by April 2027. Amazon has already issued more than $845 million in redress payments as of September 2026.